Strong Q1 for semiconductor distribution and billings
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Reports by DMASS and IDEA reveal that, while the overall growth of the European semiconductor market is slowing down in relative terms, semiconductor distribution had another record quarter.
DMASS (Distributors' and Manufacturers' Association of Semiconductor Specialists) recorded an all time high quarter since its creation more than 20years ago. In Q1 2011 sales of DMASS members grew by 33.5% to €1.81billion compared to the same period a year earlier. DMASS only reports industrial semiconductor sales.
New electronic components distributor total available market (dtam) figures released by IDEA (International Distribution of Electronics Association) indicate that European distributors saw an unexpected increase in billings (sales revenue less credits) during the first quarter of 2011 compared to both the previous quarter and the same period last year. However, bookings (net sales orders entered) declined in the period.
Georg Steinberger, permanent chairman of DMASS, said: "After the sequential slowdown in Q4/2010, the fear was that the 2011 market would become a very sobering affair for the industry. With a growth of 33.5% for Q1 and order books being relatively thick, it is hard to believe in any really bad surprise for the remainder of the year. Any soft landing will happen at the highest level our industry ever achieved. I believe that distribution will outgrow the total market again in 2011."
Announcing the consolidated figures for Q1 2001, IDEA's chairman Adam Fletcher noted that the billings growth in the European electronic components markets improved in all European countries but that the primary driver for growth was Germany. "The Q4 2010 result was in line with our expectations but the level of growth in Q1 2011 was significantly better than we forecast," he said. "Q1 has historically been the strongest growth quarter in Europe but historical trends have been a poor guide over the last two years and after the robust growth in 2010 a period of consolidation was expected. The important book to bill ratio has now dropped back to unity suggesting that billings growth in Q2 0211 and throughout 2011 will now slow."
According to Fletcher, global demand for electronic components remains strong with inventory levels across the supply network below previous industry norms. "Initial industry concerns about global electronic components availability due to the impact of the 'Great East Japan Earthquake' appear to have receded," he noted. "The true impact of the disaster will not become fully apparent until the end of Q2 2011, but although some components are on an extended lead time it's currently business as normal for the vast majority of European customers."
